Donald Yacktman founded Yacktman Asset Management in 1992 and was named the “Portfolio Manager of The Year” by Morningstar in 1991. Per his 2012 investor letter, Yacktman has some big bets placed on consumer staples, not to mention one of the media giants.
Good business: Indicators such as high market share, high cash returns on assets, low capital requirements and short customer cycles and long product cycles.
Shareholder–focusedmanagement: Includes reinvesting in the business while also having excess cash, making synergistic acquisitions, and buying back stock.
Low purchase price: Includes stocks that sell for less than what an investor would pay to buy the whole company.
Comcast 18 times earnings
Time Warner 18 times earnings
Disney 19 times earnings
Yacktman’s consumer staple picks
Yacktman’s big focus is on consumer staple stocks. He notes that his top consumer staple picks underperformed the market in 2012, as the market rally led to a trade up from high-quality businesses to more risky stocks.